Wiz’s decision to turn down Google’s acquisition bid may significantly affect Microsoft, according to analysts.
Wiz, an Israeli cybersecurity startup, was in talks with Google for a potential $23 billion acquisition, which was set to be the tech giant’s largest buy to date. However, on Tuesday, Wiz’s CEO Assaf Rappaport announced they would not accept the offer, opting instead to focus on achieving $1 billion in annual revenue and pursuing an initial public offering.
This move comes at a critical time, as Google aimed to enhance its cybersecurity capabilities after a massive outage caused by industry leader CrowdStrike last week. Analyst Dan Ives from Wedbush attributed the cancellation of the deal to rising investor concerns and ongoing antitrust investigations facing Google, which recently concluded its trial related to a significant case from the Department of Justice.
Ives noted that the fallout from this unsuccessful acquisition could create widespread effects across the technology sector. He anticipates that Google will continue to invest in its cybersecurity operations, saying they are likely to “double down” in this area. Microsoft, often viewed as Google’s rival, is also expected to seek consolidation in the cybersecurity field in the coming months.
The situation gained attention for Microsoft as it faced backlash due to a recent global IT outage linked to a faulty update of its cybersecurity software, which utilizes CrowdStrike technology. Users around the world reported experiencing critical disruptions, known as the “blue screens of death.” Although Ives still regards CrowdStrike as the “gold standard” in cybersecurity, the outage may highlight a need for Microsoft to enhance its cybersecurity offerings, and the collapse of the Wiz deal could further fuel this initiative.